Which of the Following Is NOT a Major Category of Cash

question 54

Multiple Choice

Which of the following is NOT a major category of cash flows in capital budgeting?

• A)initial investment in machines
• B)recurring operating cash flows
• C)cash flows from dispositions of assets
• D)management and labour allocation deductions
• E)initial working capital investment

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.

Operating Cash Flows

Cash generated from a company's regular business activities, indicating the company’s ability to generate sufficient cash to maintain and expand operations.

Net New Borrowings

The total amount of new debt a company takes on minus any debt repayments, indicating the net change in debt level.

Net Working Capital

The discrepancy between a firm's immediate assets and liabilities, reflecting its short-term fiscal well-being and operational effectiveness.